The NII refers to a new tax called the Tax on Net Investment Income. This is a 3.8% tax that applies starting in 2013 to income that generally is considered passive. The tax is going to apply to dividends, to interest, to capital gains unless they are from an active business and any business in that category. If you are in the tax bracket, it’s $200,000 if you are single and $250,000 if you are married filing joint, you are going to be subject to this tax. If you are close to that line, you are going to want to look carefully at managing any of that type of income that you can.
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